Ryanair threatens to scrap 19 routes over subsidy row

Ryanair says it could be forced to scrap its 19 French routes if the European Commission rules that its deal with Charleroi airport in Brussels is illegal.

The ruling, expected in late October, will draw up guidelines for airlines negotiating with public airports. If it decides that 'low-cost deals' cannot be struck with public airports, Ryanair will stop using them.

The airline's communications director Paul Fitzsimmons said: 'This decision will have a fundamental effect on low-cost travel. It's not a scenario that we anticipate happening, but if they rule against our Charleroi deal, these small airports will be sent back to the 1950s - empty.'

The Charleroi case has come under the spotlight since Ryanair announced last week the suspension of flights to Strasbourg from 24 September, following a local Alsace court ruling that a £1 million public subsidy Ryanair received from the Strasbourg Chamber of Commerce was anti-competitive.

Fitzsimmons said: 'The decision is nuts.'

Ryanair is appealing against the decision and plans to resume services to Strasbourg if and when it receives a stay on the judgment or wins the appeal.

Meanwhile, the low-cost airline will replace the twice-daily service from Stansted with new twice-daily flights to Baden-Baden, Germany, 25 miles away. One way fares will cost from €14.99 (£10), including taxes.

The 10,000 customers who have booked tickets to fly to Strasbourg can either reroute to Baden-Baden or cancel their trip and get a full refund.

The airline has what it terms 'low-cost deals' with another 18 publicly owned airports in France - receiving heavy subsidies in return for bringing in large numbers of tourists. Strasbourg gained around 200,000 extra arrivals annually from the Ryanair service. Rival airlines and airports may be encouraged by the Strasbourg judgment to petition the courts on the legality of such deals. Already Ryanair's deal with the city of Pau in south-west France has been the subject of complaint from the airport of neighbouring town Tarbes.

A spokeswoman for rival airline EasyJet said: 'The [Strasbourg] ruling highlights the difference between EasyJet and Ryanair in that we fly to main city airports while they go to secondary airports. What Ryanair are doing is non-competitive - they can drop their prices because they are not looking to make a profit on fares alone. The ruling will level out the playing field.'

But Fitzsimmons denied that the playing field was uneven: 'People are missing the fact of what we are giving to the airports - for instance in Charleroi we committed to staying for 15 years and adding two routes per year. Other airlines weren't willing to do this.'

By flying to secondary airports, Ryanair has made many parts of France cheaper and more easily reached than ever before.

Simon Evans, the chief executive of the Air Transport Users' Council, is worried progress will be stalled: 'The Strasbourg ruling appears to be against the consumer's interest because Ryanair provided a more cost-effective service for passengers.'